NAV (net asset value) per share before deferred tax stood at euro 20.42 as at 30 September 2008, a 1.2% increase year-on-year and a 2.6% decrease compared to the first half of 2008. The year-on-year increase stemmed mainly from a fair value adjustment on investment property recorded during the first half of 2008 from the completion of 340 Syggrou Avenue. The quarterly NAV decrease stemmed mainly from the fair value of the Group's interest rate swaps which led to a significant increase in finance expenses.
NAV per share after deferred tax stood at euro 16.83, an 8.0% year-on-year increase and a 1.2% increase over the previous quarter. The Group's deferred tax provision fell in the third quarter of 2008, following a change in Greek corporate tax legislation, leading to an increase in NAV after deferred tax.
BVIC Group's investment properties reached euro 1.37 billion, up 11.0% from year end 2007. The most significant change to investment properties came from the completion of 340 Syggrou Avenue during the second quarter of 2008, leading to a euro 101 million increase in the asset valuation from year end 2007. During the third quarter of 2008 investment properties increased by euro 10.6 million due to additional construction costs incurred as progress continues at the Votanikos shopping mall and the tourist development in Poros-Galatas, bringing total additional construction cost of investment properties for the 9 months 2008 to euro 28.8 million. However, as this increase in investment properties was cost driven it did not generate any revaluation gains. The Group's revenue reached euro 40.3 million, a 52.5% decrease compared to 9 months 2007. Sales of residential assets mainly generated euro 4.7 million of revenue in 9 months 2008, whereas during the same period in 2007 sales from the Hellenic Exchanges Complex generated euro 50.0 million in revenue.
The Group's rental revenue reached euro 34.8 million, a 2% year-on-year increase, which stemmed mainly from the following new lease agreements: Media Saturn has opened its new store at 340 Syggrou Avenue in September, and therefore contributed one month rent of euro 195,000. The new lease with Media Markt at 49 Kifissias Avenue generated euro 75,000 for the third quarter of 2008, whereas in the second quarter of 2008 it only contributed one month's rent of euro 25,000. Finally, the asset purchased at 1-3 Kifissias Avenue in Q1 2008 was leased and contributed one month rent of euro 28,000 in September 2008. These three lease agreements will contribute euro 2.976 million on an annual basis during 2009, generating an increase of over 6% in rental revenue versus 2008.
A year-on-year increase in rental income of nearly 6.4% in 9m 2008, from the lease indexation to Greek CPI and 100 bps, was almost entirely offset by the termination and alteration of the leases with the parking station operator at 49 Kifissias Avenue and Delta Falirou respectively, as well as the maturity of a sublease at 32 Kifissias Avenue and a two year retrospective rental decrease of euro 482 thousand due to an agreement enacted in Q2 2008. BVIC Group's EBITDA (earnings before interest, tax, depreciation and amortisation) stood at euro 86 million as at 30 September 2008, compared to euro 19 million as at 30 September 2007. There was a net gain from fair value adjustment on investment property of euro 84.4 million, mainly from the completion of 340 Syggrou Avenue. In the third quarter of 2008 there was no fair value adjustment on investment property.
Net finance expenses stood at euro 66 million, up from euro 25 million at 30 September 2007, stemming mainly from a euro 29.9 million net loss from the net fair value of the Group's interest rate swap agreements. The fair value of these swaps is mainly affected by the variability of the interest rate curves and the uncertain conditions prevailing during the last months.
BVIC Group's income tax revenue for the period ended 30 September 2008 was euro 22.2 compared to a tax expense of euro 2.2 million for the same period in 2007. During September 2008, the tax legislation regarding corporate tax rates was changed and corporate tax rates will gradually decrease by 1% per annum from 25% in 2008 and 2009 to 20% from 2014 and thereafter. As a result of this, the Group's deferred tax liability fell by euro 24.2 million for the period.
The Group's profit after tax for the period reached euro 41.5 million, compared to loss after tax of euro 8.8 million in the nine months 2007. Votanikos.
In August 2008, BVIC received the building permit for the shopping mall that is being developed in the area of Votanikos including 80,000 sqm of underground area as well as 70,000 sqm of above the ground area. Reinforced concrete works are currently being carried out, and they have already reached the second floor above ground in certain parts Works for completing the basement area are also carried out. The project is on track for completion during the 4th quarter of 2009, when it will be delivered "cold shell" to the tenants. Following its delivery, the interior fitting of the retail shops will be carried out, with the aim to be fully operative by the end of the 1st quarter 2010.